1 option
How I Learned to Stop Worrying and Love Fire Sales / Pablo Kurlat.
- Format:
- Book
- Author/Creator:
- Kurlat, Pablo.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w24752.
- NBER working paper series no. w24752
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2018.
- Summary:
- In canonical models with financial constraints, the possibility of fire sales creates a pecuniary externality that results in ex-ante overinvestment. I show that this result is sensitive to the microfoundations for fire sales. If they result from asymmetric information instead of misallocation, the overinvestment result is reversed. Macroprudential policy may therefore need to treat different types of investment differently.
- Notes:
- Print version record
- June 2018.
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